Even some free-market advocates are lining up in favor of the basic income. Sam Bowman of the Adam Smith Institute argues that the basic income would be an improvement on the current capitalist system.
First, Bowman argues that the basic income will alleviate in-work poverty. That is individuals that work but are still in poverty. As automation eliminates many jobs, this will be increasingly essential.
Second, Bowman points out that a basic income will lower the complexity of the current welfare system. Instead of having many specific welfare programs, the government would replace it with a simple cash grant.
Third, Bowman believes the basic income would allow for other reforms that would raise living standards. For example, allowing for greater immigration and lowering investment taxes. Moreover, a basic income may replace the minimum wage, which Bowman said causes unemployment for some workers.
Sam Bowman. “A neoliberal case for a basic income, or something like it.” April 18, 2016. Adam Smith Institute.
